Grid IconAll Posts Market Summaries

European Bond Research – April 23, 2019

Posted on April 23, 2019
EUROZONE PRIVATE SECTOR GROWTH DECELERATES IN APRIL as manufacturing contracts for the second consecutive month.  New export orders collapse for the seventh straight month alongside services PMI dipping to a seventh month low of 55.6.  Retail sales rose to a four-month high in March growing by 1.1 percent month over month, year over year sales improved 6.7 percent. The 10-year Gilt rose 1.7 basis points. FTSE 100 +0.76%, German DAX +0.15%, CAC 40 +0.13%, STOXX Europe 600+0.17%

unnamed (96)

ROYAL BANK OF SCOTLAND (RBC) EXPANDED ITS FUNDING BY TWOFOLD to assist small businesses, increasing the total to 6 billion pounds.  The original purpose of the funding was to “Brexit-proof” businesses, however, the initial purpose has shifted.  Mike Slevin, head of capital management at NatWest stated: “It’s really about demand from growth sectors in the UK economy” including green energy and technology.  U.K. household finance index moved in tandem with weak April data suggesting a downbeat consumer sentiment despite an uptick in the perception of job security.   ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-grade bonds edged out high-yield debt as of 3 PM, London time.  Among European high-grade bonds showing a concurrence of top price gains at appreciable volumes traded,  HSBC Holdings PLC (USD) 4.25% 8/18/2025 made some analysts’ ‘Conviction Buy’ lists. (See the chart for HSBC Holdings PLC bonds below). Corey Mahoney (

Sovereign-Debt Snapshot

Country Maturity (Y) Yield (%) Previous (%) Spread (bp)
Australia 10 1.960 1.960 -62.1
Belgium 10 0.462 0.462 -211.8
France 10 0.370 0.370 -221.0
Germany 10 0.026 0.026 -255.4
Italy 10 2.451 2.451 -12.9
Japan 10 -0.026 -0.026 -260.6
Netherlands 10 0.102 0.102 -247.8
Portugal 10 1.166 1.166 -141.4
Spain 10 1.061 1.061 -151.9
Sweden 10 0.275 0.275 -230.6
U.K. 10 1.198 1.198 -138.2
U.S. 10 2.580 2.564

Credit-Default Swap Market

LATEST NEWS: Top moves, sovereign tighteners (5Y): France 27 bp and UK 28 bp. Sovereign wideners (5Y): Korea 31 bp and Ireland 31 bp.

unnamed - 2019-04-23T122411.137

New Issuance

New Issues New Issues [Continued]
1. Erste Group Bank AG (EUR) 0.4% 5/7/2034 (04/22/2019): 50MM Senior Unsecured Notes, Price at Issuance 100, Yielding .4%.

2. Davide Campari-Milano SPA (EUR) 1.655% 4/30/2024 (04/23/2019): 150MM Senior Unsecured Notes, Price at Issuance 100, Yielding 1.66%.

ADI Indexes

unnamed (67)


iShares Core EUR UCITS iShares Euro High Yield UCITS
NAV as of 04/23/2019, 131.68 NAV as of 04/23/2019, 104.06
Daily NAV Change (%) -0.07% Daily NAV Change (%) +0.05%

The euro-zone economy shows signs of positive momentum, although conditions are expected to deteriorate hindered by the termination of quantitative easing, weakening credit rating quality, and uncertainty regarding the outcome of Brexit. Closely watched indicators and rates:

  • Eurostat’s unemployment ratecurrently 7.8% (seasonally adjusted, February 2019)
  • Eurostat’s quarterly GDP: 0.2% (2018 Q3 Final)
  • 6-month Euribor: current value –0.232%, as of 04/18/2019

Copyright 2019 Advantage Data Inc. All Rights Reserved.

Information in this document should not be regarded as an offer to sell or solicitation of an offer to buy bonds or any financial instruments referred to herein. All information provided in this document is believed to be accurate. However, Advantage Data and its sources make no warranties, either express or implied, as to any matter whatsoever, including but not limited to warranties of merchantability or fitness for a particular purpose. Opinions in this document are subject to change without notice. Electronic redistribution, photocopying and any other electronic or mechanical reproduction is strictly prohibited without prior written permission from Advantage Data Inc.

Are you using AdvantageData?

AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:

  • 500,000+ U.S. and international corporate bonds
  • Over 300,000+ BDC fair value assessments dating back to 2000
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 15 products and services from debt to loans to mid-market
  • Used by top buy and sell-side firms worldwide


facebook share icon twitter share icon linkedin share icon
Ready to get Started? Free Trial